Sembcorp signs joint venture agreement for wastewater treatment in Jiangsu, China
Sembcorp Industries' subsidiary, Sembcorp (China) Holding Co, has entered into a joint venture agreement with Chinese partner, Jiangsu Province Lvsi Coastal Economic Zone Development & Construction Co, to build, own and operate an industrial wastewater treatment plant in the Qidong Lvsi Port Economic Development Zone in Jiangsu province.
Sembcorp (China) Holding and Lvsi D&C will incorporate a joint venture company in China with a combined investment of approximately S$16 million. Sembcorp will own a 95% stake in the company while Lvsi D&C, which is wholly owned by the Qidong Lvsi EDZ Administration Committee, will hold the remaining 5%.
The industrial wastewater treatment plant will have a design capacity of 10,000 cubic metres per day and will be capable of treating multiple streams of high concentration industrial wastewater with chemical oxygen demand of up to 1,000 milligrammes per litre.
With this facility, Sembcorp has an established presence in water and wastewater treatment in 13 cities across nine provinces in China, serving both industrial and municipal customers.
The new plant is expected to have an initial capacity of 5,800 cubic metres per day. The facility is located in the Petrochemical & New Materials Industrial Park, a 12-square kilometre park in the Qidong Lvsi EDZ, which is a new petrochemical industrial zone in Jiangsu province.
Expected to be completed by the end of 2013, the plant will provide industrial wastewater treatment services to its anchor customer, China National Chemical Engineering Group, under a 15-year contract which Sembcorp has secured. CNCEG is a state-owned enterprise listed on the Shanghai Stock Exchange.
This project gives Sembcorp exclusivity as the provider of industrial wastewater treatment within the Petrochemical & New Materials Industrial Park. This new facility will complement the group’s existing water operations in Jiangsu, where Sembcorp now has a presence in four locations, including Zhangjiagang, Nanjing and Yancheng.
Mr Tang Kin Fei, Group President & CEO of Sembcorp, said, “We're excited to embark on this new project in Qidong, to offer our expertise in complex industrial wastewater treatment to customers in the Petrochemical & New Materials Industrial Park and to support the growth of the industrial park. We are pleased to have secured China National Chemical Engineering Group as our anchor customer and look forward to serving them and other new customers setting up operations in the industrial park."
The signing ceremony took place in the presence of Singapore Consul-General in Shanghai Mr Ong Siew Gay, government officials from Nantong city and Qidong city and delegates from International Enterprise Singapore.
The transactions are not expected to have a material impact on the earnings and net asset value per share of Sembcorp Industries for the current financial year.
< Back to news page